Zephyr Partners Acquires Downtown San Diego City Block

San Diego-Based Firm Announces Plans for New High-Rise Mixed-Use
Community

June 18, 2014 02:14 PM Eastern Daylight Time

SAN DIEGO--(BUSINESS WIRE)--San Diego-based real estate development and investment company Zephyr
Partners has announced the $21.1 million off-market acquisition of one
of the last remaining full blocks of available property in downtown San
Diego – a 60,000-square-foot site on Broadway between 7th Ave. and 8th
Ave.

The existing property, consisting of rundown and underutilized retail,
parking and office space, will be demolished to make way for a mixed-use
retail and residential community, designed to help extend downtown’s
core and revitalize the land between the Gaslamp Quarter and Financial
District.

According to Zephyr’s Co-CEO Brad Termini, the property was a compelling
buy on many levels. “This transaction offered a rare opportunity to
acquire property in urban San Diego,” said Termini. “The site spans a
full city block, and is one of the few remaining underdeveloped areas in
downtown’s core. After studying the layout of other major urban areas
such as Los Angeles, San Francisco and Seattle, we think this project
will accelerate the transformation of downtown San Diego, as it
continues to evolve into a more walkable and accessible neighborhood.”

Enabling Zephyr to construct the city’s first high-rise, mixed-use
project since the recession, zoning of the site allows for development
up to 750,000-square-feet with plans for two 40-floor towers housing
residential, boutique hotel and retail space. Groundbreaking is slated
for fourth quarter 2015.

The goal, says Termini, is to create a unique urban living and retail
destination that residents, locals and tourists will enjoy. The
reinvented community will attract new downtown residents and provide
Gaslamp visitors a connection to a dynamic retail experience with a
range of dining and shopping options.

The original eight-property portfolio was built in the 1950s and had
fallen into disrepair over the last 30 years, Termini said. “We are
excited to further the renaissance of San Diego’s downtown core, and
transform a once neglected property into a vibrant and appealing
community,” he said.

Termini estimates that the cost to complete the project will exceed $250
million, making it Zephyr’s biggest development and one of the largest
currently planned for the downtown core. It is Zephyr’s second recently
acquired condominium project, which also includes a Banker’s Hill
property at 2850 Sixth Ave. The company will build 60 high-end, luxury
condominiums on the site, to be completed in 2015.

About Zephyr Partners

Founded in 2008, Zephyr Partners is a San Diego-based real estate
development and investment company committed to building high quality
attached and detached homes, condominiums and luxury apartments. The
company, co-founded by Brad Termini and Dane Chapin with a highly
successful group of entrepreneurs working alongside them, has
successfully completed and sold developments throughout San Diego
County. For more information, visit www.zephyrpartners.com.